European asset manager Amundi announced that it has been selected by a coalition of UK Higher Education Institutions (HEIs), led by the University of Cambridge, to launch a cash fund that excludes companies contributing to fossil fuel expansion globally.
According to Amundi, the new fund will exclude fossil fuel companies, as well as utilities, banks, insurers, and other companies that contribute to fossil fuel expansion. Excluded companies can become eligible to be included in the fund if they stop engaging in or facilitating fossil fuel expansion.
University of Cambridge Chief Financial Officer Anthony Odgers said:
“This is the first cash fund we know of that will avoid providing liquidity to financial institutions who continue to finance companies that are building new infrastructure, such as coal- and gas-fired power plants, which will lock in fossil fuel combustion for decades.”
The Cambridge-led HEI coalition encompasses 79 UK colleges, universities and other institutions, including the University of Oxford, London School of Economics, University of Edinburgh, University College London. Coalition members have indicated that they expect to invest in the first instance close to £500 million (USD$664 million) in the new fund, which will enable them to make short-term cash-like investments without contributing to fossil fuel expansion.
The fund is expected to launch towards the end of 2025, with more seed investors also expected to join prior to launch.
Jean-Jacques Barbéris Head of Institutional & Corporate Clients Division and ESG at Amundi, said:
“At Amundi we are committed to the view that delivering strong stewardship as well as expert responsible investment solutions will facilitate the transition to an inclusive, low carbon economy while delivering stable, long term sustainable value for clients. This product, developed for the UK’s leading universities and higher education institutions, reflects a growing recognition among UK investors of the importance of these efforts in supporting long-term social, environmental and economic benefits.”
